Dollar turns positive despite downbeat economic data

Investing.com – The dollar moved into positive territory against a basket of global currencies, despite dwindling investor confidence of stronger U.S. second-quarter economic growth, after economic data undershot expectations.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.07% to 97.05.

Investors scaled back expectations of robust second-quarter economic growth, as new orders for key U.S.-made capital goods unexpectedly fell in May suggesting a slowdown in the manufacturing sector.

The Commerce Department said on Monday that overall orders for durable goods, fell 1.1% in May, the biggest decline since November.

Analysts had forecast durable goods orders to decline -0.6%.

During the week, investors are expected to closely monitor speeches from several Fed officials for clues about future monetary policy.

The dollar has struggled to hold onto gains in recent sessions, extending its losing streak to two-weeks amid moves higher in both the pound and euro.

GBP/USD traded roughly flat at $1.2718, falling from session highs amid confirmation that an agreement has been reached which will see the Democratic Unionist Party (DUP) back Theresa May’s minority party.

EUR/USD dipped by 0.07% to $1.1187, while EUR/GBP traded a notch below break-even at 0.8797.

The oil-linked Canadian dollar regained momentum against the greenback, with USD/CADat C$1.3247, down 0.15%, as oil prices rebounded from recent lows.

Demand for safe havens remained subdued, as the dollar added to gains against safe-haven yen, with USD/JPY at Y111.64, up 0.31%.